Reference no: EM132645452

Question 1. When measuring lost profits or other damages, it is necessary for the plaintiff to

A) to attempt to mitigate its damages.
B) to show that the defendant's actions clearly call for punitive damages.
C) to prove that fraud was involved in the case.
D) to prove that there was no liability in the case.

Question 2. A simple but potentially useful method of estimating cost behavior is the

A) regression-correlation method.
B) high-low method.
C) scatter-gram method.
D) by gut and by golly method.

Question 3. Cost behavior refers to

A) how managers behave in response to cost data.
B) how costs change with respect to management decisions.
C) how businesses behave in connection with cost changes.
D) how costs change with respect to changes in the volume of activity.

Question 4. In order to win damages in a case, generally a plaintiff must prove

A) liability and blame by the defendant.
B) damages occurred and they were large.
C) the defendant was liable in the case and the liability resulted in damages.
D) there was no breach of contract.

Question 5. Two major theories of damages are

A) out-of-pocket and reasonable certainty.
B) benefit-of-the-bargain and reliance.
C) benefit-of-the-bargain and lost profits.
D) out-of-pocket and benefit-of-the-bargain.